BSEIndia: All Stock Market News: [Ways-2gain] Union Budget 2010-2011

Saturday, February 27, 2010

[Ways-2gain] Union Budget 2010-2011

UNION BUDGET 2010-2011

INCOME TAX

Individual

Existing	Proposed
From Rs.1,60,001 to Rs 3,00,000 -10%	From Rs.1,60,001 to Rs 5,00,000 -10%
From Rs.3,00,001 to Rs 5,00,000 -20%	From Rs.5,00,001 to Rs 8,00,000 -20%
Above Rs.5,00,000 -30%	Above Rs.8,00,000 -30%

Additional investment of Rs 20,000 in infra bonds over and above Rs 1 lakh in 80C.
Enhance tax audit limits for professionals to Rs 15 lakh

Corporate

Reduces current surcharge of 10% on domestic comp to 7.5%
Peak excise duty hiked from 8% to 10%
Weighted deduction from 150% to 200% for in-house R&D
Limits for turnover for purpose of presumptive taxation of small business enhanced to Rs 60 Lakhs

TAX - OTHERS

Goods and Service Tax (GST) and Direct Tax Code (DTC)

Implementation of GST and DTC by April 2011

MAT Negative

Minimum Alternate Tax up from 15% to 18% on book profits

AGRICULTURE P

Will reduce fertilizer subsidy
Focus to improve food security
To provide Rs 400 cr to extend green revolution to eastern India
Sets aside Rs 200 cr for a new agricultural initiative
Repayment tenure for farmer loans extended by 6 months to June 30th 2011
To provide 2% loan subsidy to farmers
Proposes to increase subvention to 5% in repayment of farmer loans
Allocates Rs 1,200 cr for drought mitigation
Agri credit flow target for this year increased to Rs 3,75,000 cr from Rs 3,25,000 cr last year
To set up 5 more mega food park projects
Rs 300 cr for Rashtriya Krishi Yojna
Rs 100 cr allocated for women farmers
External commercial borrowing will be available for food storage industries

EDUCATION

Govt allocates Rs 31,036 cr for school education and Rs 3,675 cr for elementary education

INDUSTRIES Automobile and Ancillaries

Excise duty on large cars, SUVs, multi utility vehicles raised to 22% from 20%
Full excise cut on electric cars

Banking & Financial Companies

Sets aside Rs 16,500 cr for PSU banks to get minimum 8% tier 1 capital by March 2011
RBI to release additional licenses to pvt sector banks and non-banking financial institutions
Repayment tenure for farmer loans extended by 6 months to June 30th 2011
Agri credit flow target for this year increased to Rs 3,75,000 cr from Rs 3,25,000 cr last year
To provide 2% loan subsidy to farmers
Proposes to increase subvention to 5% in repayment of farmer loans
IIFCL disbursements at Rs 9,000 cr by March 2010
Housing loan: 1% interest subvention scheme extended, allocation Rs 700 cr
Allocates Rs 100 cr for new pension scheme, to benefit 100,000 low income citizens
All villages with 2000+ population to get banking facilities by 2012

Cement

Partial rollback of excise duty on cement

Infrastructure & Engineering

44% of total plan outlay allocated to infrastructure
Budget allocates Rs 1.73 lakh cr for infrastructure
IIFCL disbursements at Rs 9,000 cr by March 2010
Delhi-Mumbai industrial corridor taken up for development
Road transportation kitty increased 13% to Rs 19,894 cr
Govt allocates Rs 16,500 cr for railways
Rs 66,1000 cr allocated for rural development in FY11
35% of development funds to be invested in rural India
Urban development allocation up more than 75% to Rs 5,400 cr
Rs 100 cr for financial inclusion fund; Allocation for Bharat Nirman at Rs 48,000 cr
Additional Rs 20,000 deduction available for investment in infra bonds
Government committed to SEZs to promote exports
No import duty on some equipment in road projects

Fertilizer

To provide govt subsidy in cash instead of bonds for fertilizer
Will reduce fertilizer subsidy
Rs 300 cr for Rashtriya Krishi Yojna

FMCG

To set up 5 more mega food park projects
External commercial borrowing will be available for food storage industries
35% of development funds to be invested in rural India
Rs 66,100 cr allocated for rural development in FY11
Duties on smoking and non-smoking tobacco products up

Gems & Jewellery

Import duty on silver raised to Rs 1,500 per kg

Healthcare

Focus to improve healthcare systems
Govt allocates Rs 22,300 cr to healthcare
Weighted deduction from 150% to 200% for in-house R&D

IT/ITES Neutral

UID authority given Rs 1,900 cr
Government committed to SEZs to promote exports

Oil & Gas Positive

To discuss Kirit Parikh report in due course
Petroleum products: basic duty of 5% crude , 7.5% on diesel & petrol; 10% on refined products
Rs 1 per litre excise on petrol, diesel
To provide govt subsidy in cash instead of bonds for oil

Power

Govt to facilitate 20,000 MW of solar power by 2022
Govt to have a coal regulator for allocation of coal blocks
To levy clean energy cess on imported coal
Funds for power allocation raised from Rs 2,232 cr to Rs 5,132 cr
Propose to hike allotment for renewable energy by 61%
For solar mission, solar power generating units rates are to be reduced by 5%
Cut in duty for photovoltaic units

PSU Positive

Divestment proceeds budgeted higher in FY11 vs FY10
Govt to raise Rs 25,000 cr through disinvestment

Real Estate

Indira Awas Yojana: allocation up by Rs 10,000 cr
Sops for real estate, housing projects extended by a year
Housing loan: 1% interest subvention scheme extended to March 2011, allocation Rs 700 cr
Delhi-Mumbai industrial corridor taken up for development

Telecommunication Neutral

Allocation for Bharat Nirman at Rs 48,000 cr
Mobile accessories market to get tax breaks

Textile

FM extends interest subvention of 2% for exports of handlooms, handicrafts and SMEs for 1 year
Exclusive skill development programme in textile and garment sector
Khadi institutes get Rs 400 cr
GOI sign USD 150 mn deal with ADB for implementing Khadi programme
One time grant of Rs 200 cr to Tamil Nadu for textiles
Government committed to SEZs to promote exports

Tourism